Industry Shift and New Tool
# 919 7 Ways pitch on landing page (https://vimeo.com/1021939723) duration 11:16 [related] whisper small.en, float32, window-chained 24s Greetings and thank you for joining us today. Conversation we're going to have is seven ways to make money with credit reporting. There is a major shift going on right now in the property management industry and you don't want to miss out on it. Many people underestimate what it's going to be. They hear about reporting tenants to the credit bureau.
I've got to blow it off thinking they know what the conversation is, but I can assure you that it is a new tool that every manager in the property management industry in the next two to three years are going to be on board with us. There's just too much money to make not to do it. And if you ignore it and kind of wait for two or three years to figure it out, you're going to miss out on an awful lot of money. as big money to be made with this new tool.
Personal Background and Experience
Greetings, I'm Robert Locke. I've been in the property management business for 40 years. We sold out our company to a Fortune 500 company about eight years ago. You know them as Goldwell Banker. So we started a company in the basement of our home in 1980, grew it up to a thousand doors, sold it off to a Fortune 500 company, kind of every property manager's dream, I think.
Especially since it was all cash and they bought the company, not the management accounts, right? And I've been a national trainer with ARPAM for about 20 years, speaking on the national platform, state conferences, regional conferences, and so on.
Seven Ways to Make Money
This particular video series is going to be covering, number one, how this tool made crown over 4 million bucks. Best we can figure out. We made about $4 million on top of all the other revenue streams, just with this one tool of reporting tenants to the credit bureau, and there's seven ways to do that. I'm gonna describe that in this video series. Secondly, why did it go away?
In other words, when we figured this out in the early 80s, we became a member of Equifax, and that means for 30 years, we reported every tenant every month to the credit bureau. We could raise a tenant's credit score by 60 to 80 points a year. We could diminish a tenant's credit score if they refused to pay unpaid late fees, check charges, the money they owed when they left your company, got a post move out stuff, and there's seven different ways that we figured out how to make money with this tool. Why did it go away?
Who reinvented it and how you can have and make it available to you.
History and Legal Changes
So first of all we're going to kind of describe you know what this new tool looks like and how it made us so much money. Number two we're gonna go through seven ways that reporting every tenant to the credit bureau every month made us money and it was just it took us time and we didn't figure it out all at once. We had this tool for 30 years and at the end when we sold to Coldwell Banker we made an extra $500,000 just because of this one tool. Thirdly we're going to talk about how one company kind of cracked the code to make this available to every property manager in the country. There are a lot of companies out there today that are claiming we'll report your tennis to the credit bureau.
If you dig down, kind of what I've done in the last two years, kind of forensically dug in and find out what they're doing, how they're doing it, how fast, what does it cost? There's only one company that is worth considering as you're doing this. All the rest of them fail the grade when it comes to, you know, effectively doing it. Positive, negative, fully automated. Well, if there are all those terms, kind of bring up the speed on some new language so that you don't understand what the real benefit is.
Here's the image I want to kind of leave in your brain, okay? Here's this poor property manager, what do you think financial fumes in their management business, I've said for a couple of decades, property management is a nickel-dyed penny, any thin margin business. Oh my gosh, I woke up every Monday morning, trying to figure out why I got in this business. It's such a penny anti-business. But if you do it right, you do it the way I did it, you make a ton of money.
This conversation is about receivables. Not something that Narbum is particularly good at in training, but there's money sitting out there in your tenant ledgers, on current tenants, unpaid late fees, bounce check charges, renewal fees, COVID rent, a lot of money sitting out there. We figured out how to collect it all using credit reporting. Then when the tenant moves out on a bunch of money, we can show you how to use credit reporting to put your thumb on their credit report just like Visa and MasterCard and Wells Fargo and Argan Express and all these companies that can affect a customer's credit score if they don't pay as agreed.
Now, little history. We started in 1980 as Crown Management. Back then, there were no tenant screening services. We needed credit reports. We needed a way to report on tenants if they didn't pay as agreed.
We stumbled into a relationship with one of the Bureau's Equifax. You didn't need more than one back there. And we began affecting tenants' credit scores. Now that means for 30 years we reported every tenant every month to the credit bureau. Now think about that.
With a thousand doors, which is what we had when we sold out to Coldwell Banker, we were reporting 1,700 to 1,800 tenants every month. could diminish their credit score if they didn't pay a late fee. We can raise their credit score if they were in a lease purchase and we wanted to sell them a house. So we're going to go through, you know, this conversation about what changed, why can't you get a membership with Equifax. When we did it, we had our a trade line directly with them, just like Visa and MasterCard do.
Our name showed up in their credit report, Crown Management, 90 days late, 120 days late, and that woke people up and they came back and paid us what they owed us, because we had a direct line with the credit bureau. Now, that went away for 30 years, and now it's back. So, we're We're going to talk about what happened in those 30 years that prevented you from being a member of the credit bureau and having the power that we had over tenants' credit scores. One thing that happened is there was a new law created by Congress in 2003 that reached out and enticed property managers to report all their tenants to the credit bureau. There are about 100 million people out there in our society that pay rent and get no benefit of paying rent on time to the credit bureau.
So Congress in 2003 came up with what's known as the FACT Act, trying to entice, encourage bribe property managers to report all their tenants to the credit bureau, both tenants who paid his agreed and grow their credit score, or tenants that haven't paid his agreed diminish their credit score. When you have that kind of power over a tenant, you wake them up. They pay the late fees. They pay all the money that they owe you without it getting into any litigation.
There's no backwash. There's no lawsuits. There's none of that. We reported for 30 years, never had a lawsuit, because Congress made sure you wouldn't. Why?
Because they want you to report your tenants to the credit bureau. One of the enticements they put out there is that they gave the federal moratorium against litigation. So people who say, oh, you don't want to report to the credit bureau, you can get sued for that. Don't listen to those people anymore. The second thing that happened is the creativity of one company that came up with a system that'll report your tenants efficiently, fully automated, negative and positive.
Credit Reporting Platform
The fee is very, very low, and we're gonna introduce you to that company along the way because they're the only company out there that does it the right way. We did a forensic study over the last couple of years of these different platforms that offer credit reporting. And we know the flaws in every one of them. This company is the only one that can do it the right way. And that tool is now available to you now.
Disinformation Warning
Caution, caution, okay? Lots of disinformation in this space. I've talked to reporting services that can help you report to the credit bureau like this. And I have, on the surface, they'll tell you just what you want to hear. Now they embellish it, they, disinformation is kind of a nice word for a lie or an exaggeration, or they don't tell you everything.
And I've done the forensic study on this. There's tons of disinformation out there about this. And when you learn the language and you do the forensic study that I've done, you'll find the same conclusion. There's only one company that can do it. There's so many myths.
Myths and Revenue
And we'll go through about six myths that people have come to believe in the property management industry about credit reporting that is not true. We can show you how to generate big money reporting your tenants to the credit bureau. Cheap, fully automated, very efficient, no litigation, and some other things that I'll describe to you.
Series Subscription
Now, we want you to sign up for the series, okay? These videos are six to seven minutes long. You can elect on the webpage on the right-hand side whether you get them every day, or every three days or every five days, kind of depending on how hungry you are for the information. There is no charge. You can unsubscribe at any time.
We're not trying to lock you in, but there's a series that will drip out to you over a period of time, and I promise you this.
Revenue and Lawsuits
We made, let's see, that looks like four million. How about we drop a zero off? That look a little better? Yeah, $4 million is what we figured we earned by took generated revenue above the normal management fees. Never had a lawsuit, not one.
And that was over a period of 30 years, okay? We will teach you, we will show you how to implement this and give you seven different ways to generate more revenue.
Website and Sign Up
Here's where to find us, trainingpropertymanagers.com. Get your phone out, write it down. This is where you go to find them. Dash seven ways, okay? Just an extension on our website.
Go to seven ways. You can sign up for the video there. or just go to our website, trainingpropertymanagers.com, look at it for a product, look for this graphic, you'll see everything you need to sign up. Again, they're free, unsubscribe if you don't like them. We wanna put in your pockets a new tool and show you seven different ways to use that tool and only one company that'll do it the right way.
Now go back to work.
